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Vietnam Veterans of America alleges the Veterans Affairs Department's service-disabled veteran-owned business set aside program is keeping legitimately qualified companies from competing for VA contracts. The group advocates loosening a rule that requires service-disabled veterans maintain unconditional control of all business decisions.

Rep. Bill Johnson (R-Ohio) believes a VA contracting program that requires service-disabled vets control 100 percent of their company's decision-making to qualify is too onerous. And he wants to ease the requirements.

The rule, aimed at preventing fraud in the VA
service-disabled veteran-owned small business
program, requires that veterans control 100
percent of company decisions, even if they
maintain just partial ownership. VA is taking
suggestions for changing its rules.

The department must decide by Dec. 15 whether or not it will follow GAO's recommendations after losing a bid protest decision. VA tries to explain why service-disabled veteran owned firms do not receive the highest priority for all contracts. Lawmakers express frustration over the agency's explanation.